Question

You invest $1000 in an accound that pays 7.9% interest, compounded monthly. How much money is in the account at the end of three years?

Answer 1

P=$1,000 R=.079 N=12 T=3

The answer should be 1,266.46

Answer 2

Answer:I hope the following example will help you

Explanation:

Ex1: If $1000 is invested now with simple interest of 8% per year. Find the new amount after two years.

P = $1000, t = 2 years, r = 0.08.

A = 1000(1+0.08(2)) = 1000(1.16) = 1160